"New" Viacom Pays $5.4B Dividend To "New CBS"

January 3, 2006 at 5:54 AM (PT)

As part of the new year's split of VIACOM into two companies, the new VIACOM CORP. is paying a special $5.4 billion dividend to the other half of the spinoff, radio and TV division CBS CORP. "New VIACOM" withdrew the money for the dividend from a $6 billion term loan agreement, according to an SEC filing; the stocks launch as separately traded companies TODAY (1/3), with "old VIACOM" investors getting one CBS and one "new VIACOM" share for every two old shares they own (the stocks have been trading on a "when issued" basis since early DECEMBER.